1
Property and Casualty Insurance
Licensing Exam Graded A+ With
Verified Questions and Correct
Answers
To prevent recovery beyond the amount of the insured's
actual loss, the policy will contain: - correct answer - An
Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects - correct answer - B) upset of the vehicle
The maximum amount of payable for all losses resulting
from one event is known as the:
a) occurrence limit
b) aggregate limit - correct answer - a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form - correct answer - d) Basic form
The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000 - correct answer - c) $500
1
, 2
The insured intentionally did not inform the insurer that
the insured owned only 35% of the property. The insurer
can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment - correct answer - d) concealment
Which of the following is NOT a defense against
negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - correct answer - c) presumption
of negligence
The presumed authority necessary to carry out the
producer's routine tasks is known as:
a) expressed authority
b) implied authority - correct answer - b) implied
authority
Which of the following statements regarding the Towing
and Labor endorsement is false?
a) it will pay to the limit stated in the endorsement each
time a covered vehicle is disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - correct answer - b) there is no
coverage for roadside labor costs
A licensee may violate federal law and be subject to a fine
and prison for doing which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance
regulator
2
, 3
c) fraudulently telling an insured a claim isn't covered on
the policy
d) murdering an applicant - correct answer - b) sending
threatening letters to the state insurance regulator
Which of the following is not an insured location for
liability coverage under the homeowners policy?
a) a restaurant party room the insured has rented for a
business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for a
birthday party
d) vacant land owned by the insured - correct answer - a)
a restaurant party room the insured has rented for a
business meeting
Special covers each of the following EXCEPT:
a) theft
b) mysterious disappearance
c) Acts of God
d) floods and earthquakes - correct answer - d) floods
and earthquakes
Sam has underinsured motorist coverage with limits of
$100/$300. Sam is injured by Quincy who has limits of
$50/$100. Sam's injuries are valued at $125,000. Sam's
underinsured motorist coverage will pay;
a) $25,000
b) $50,000
c) $75,000
d) $125,000 - correct answer - b) $50,000
The contract agreement may be referred as the:
a) legal interest test
b) good faith
c) meeting of the minds
3
Property and Casualty Insurance
Licensing Exam Graded A+ With
Verified Questions and Correct
Answers
To prevent recovery beyond the amount of the insured's
actual loss, the policy will contain: - correct answer - An
Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects - correct answer - B) upset of the vehicle
The maximum amount of payable for all losses resulting
from one event is known as the:
a) occurrence limit
b) aggregate limit - correct answer - a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form - correct answer - d) Basic form
The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000 - correct answer - c) $500
1
, 2
The insured intentionally did not inform the insurer that
the insured owned only 35% of the property. The insurer
can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment - correct answer - d) concealment
Which of the following is NOT a defense against
negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - correct answer - c) presumption
of negligence
The presumed authority necessary to carry out the
producer's routine tasks is known as:
a) expressed authority
b) implied authority - correct answer - b) implied
authority
Which of the following statements regarding the Towing
and Labor endorsement is false?
a) it will pay to the limit stated in the endorsement each
time a covered vehicle is disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - correct answer - b) there is no
coverage for roadside labor costs
A licensee may violate federal law and be subject to a fine
and prison for doing which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance
regulator
2
, 3
c) fraudulently telling an insured a claim isn't covered on
the policy
d) murdering an applicant - correct answer - b) sending
threatening letters to the state insurance regulator
Which of the following is not an insured location for
liability coverage under the homeowners policy?
a) a restaurant party room the insured has rented for a
business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for a
birthday party
d) vacant land owned by the insured - correct answer - a)
a restaurant party room the insured has rented for a
business meeting
Special covers each of the following EXCEPT:
a) theft
b) mysterious disappearance
c) Acts of God
d) floods and earthquakes - correct answer - d) floods
and earthquakes
Sam has underinsured motorist coverage with limits of
$100/$300. Sam is injured by Quincy who has limits of
$50/$100. Sam's injuries are valued at $125,000. Sam's
underinsured motorist coverage will pay;
a) $25,000
b) $50,000
c) $75,000
d) $125,000 - correct answer - b) $50,000
The contract agreement may be referred as the:
a) legal interest test
b) good faith
c) meeting of the minds
3
